The contract with the Stockholm club expired at the turn of the year and there will be no extension.
"It was a very difficult decision to make and it took some time. But ultimately I feel it is right for me to move on, even though there have been some emotionally tough days since I made the decision," Danielson said.
Danielson has had two spells at Djurgården - 2018-19 and 2022-present. The defender played 202 matches for the club and won a Swedish Championship gold medal in 2019.
He has 19 international caps for Sweden and was a regular at Euro 2021.
